Verification2013-14 and 2014-15

Verification for 2013-2014

2013-2014 VERIFICATION

• No sample verification worksheets

• Sample text and format for individual data elements

• Institutions are able to develop a customized worksheet for individual students or groups of students

2013-2014 VERIFICATION ITEMS

• Retained all items subject to verification in 2012-2013

• All applicants—• Household size• Number in college• SNAP benefits (formerly food stamps)—

if receipt indicated on ISIR• Child support paid—if amount indicated

on ISIR

2013-2014 VERIFICATION

• Tax filers—• Adjusted gross income• U.S. income tax paid• Education credits• Specific untaxed income items

• Untaxed IRA distributions• Untaxed Pensions• IRA deductions• Tax Exempt Interest

VERIFICATION ITEMS

• Non-tax filers• Income earned from work

2013-2014 VERIFICATION

• Added two new items—• High school completion status• Identity/Statement of Educational

Purpose

VERIFICATION TRACKING GROUPS

5 Verification Tracking Groups

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VERIFICATION EXCLUSIONS

• There are times when you don’t need to verify a student’s application.

• Except in the case of the student’s death, however, none of the exemptions excuse you from the requirement to resolve conflicting information.

• You should document the basis for an exclusion.

• Other information not excluded must still be verified according to all other requirements.

VERIFICATION EXCLUSIONS

• You don’t have to verify FAFSA information of a student in the following situations:• Death of the student. You don’t have to

continue verification if you made an interim disbursement and the student died before verification was completed.

• Not an aid recipient. The student won’t receive Title IV aid for reasons other than a failure to complete verification. This includes being ineligible for that aid and withdrawing without receiving it.

VERIFICATION EXCLUSIONS

• Applicant verified by another school. The student completed verification for the current award year at another school before transferring.

• Her FAFSA data must be the same as it was at the previous school

• You must get a letter from that school stating that it verified her application and the letter must include the transaction number of the pertinent valid ISIR.

• Post enrollment. The student was selected for verification after ceasing to be enrolled at your school and all (including late) disbursements were made.

ADDITIONAL VERIFICATION EXLCUSIONS

• The spouse, if applicable, of an independent student is deceased.

• Both of the parents (or spouse, if applicable, in the case of an independent student) are mentally incapacitated.

ADDITIONAL VERIFICATION EXCLUSIONS

• The parents (or spouse, if applicable, in the case of an independent student) are residing in a country other than the United States and can’t be contacted by normal means.

• The parents (or spouse, if applicable, in the case of an independent student) cannot be located because the student does not have and cannot get their contact information.

2013-2014 VERIFICATION

Documentation of high school completion status: high school diploma—

• High school diploma; or• Final high school transcript that shows the

date the high school diploma was awarded

Note: If a copy of an applicant’s high school diploma or final high school transcript is unavailable, the institution may accept alternative documentation.

ALTERNATIVE DOCUMENTATION HIGH SCHOOL DIPLOMA

• Limited Cases, Examples may include:• Student’s high school closed and the

student is having a difficult time obtaining the information

• Non-traditional student out of high school for several years and high school is having a difficult time finding the information

• Little information provided by ED regarding acceptable “alternative documentation”

• Cannot be self-certified by the student

2013-2014 VERIFICATION

Documentation of high school completion status: recognized equivalent of a high school diploma—• General Educational Development (GED) Certificate;• State certificate received by a student after the student has

passed a State-authorized examination that the State recognizes as the equivalent of a high school diploma;

• Academic transcript of a student who has successfully completed at least a two-year program that is acceptable for full credit toward a bachelor's degree; or

2013-2014 VERIFICATION

Documentation of high school completion status: recognized equivalent of a high school diploma—• For a person who is seeking enrollment in an educational

program that leads to at least an associate degree or its equivalent and has not completed high school but has excelled academically in high school, documentation from the high school that the student excelled academically in high school and documentation from the postsecondary institution that the student has met the formalized, written policies of the postsecondary institution for admitting such students.

2013-2014 VERIFICATION

Documentation of high school completion status: homeschooled—• Transcript or the equivalent, signed by the parent or

guardian, that lists the secondary school courses completed by the applicant and documents the successful completion of a secondary school education; or

• A secondary school completion credential for home school (other than a high school diploma or its recognized equivalent) provided for under State law

2013-2014 VERIFICATION

Documentation of identity/statement of educational purpose—

• Appear in person and present to an institutionally authorized individual—• A valid government-issued photo identification (driver’s

license, non-driver’s license, or passport); and • A signed statement of educational purpose

STATEMENT OF EDUCATIONAL PURPOSE

2013-2014 Required Verification Text

(Note: Institutions must use the exact language in the Statement of Educational Purpose as provided below)

Identity and Statement of Educational Purpose (To Be Signed at the Institution)

The student must appear in person at _________________ (Name of Postsecondary Educational Institution) to verify his or her identity by presenting a valid government-issued photo identification (ID), such as but not limited to a driver’s license, other state-issued ID, or passport. The institution will maintain a copy of the student’s photo ID that is annotated with the date it was received and the name of the official at the institution authorized to collect the student’s ID.

STATEMENT OF EDUCATIONAL PURPOSE

In addition, the student must sign, in the presence of the institutional official, the following:Statement of Educational PurposeI certify that I, _______________________(Print student’s name), am the individual signing this Statement of Educational Purpose and that the federal student financial assistance I may receive will only be used for educational purposes and to pay the cost of attending __________________________ (Name of Postsecondary Educational Institution) for 2013-2014.________________________________________(Student’s Signature) (Date)______________________(Student’s ID Number)

2013-2014 VERIFICATION

Documentation of identity/statement of educational purpose (cont.)— Must maintain, an annotated copy of the

identification submitted by the applicant that includes—

• The date documentation was received; and

• The name of the institutionally-authorized individual that obtained the documentation

2013-2014 VERIFICATION

Documentation of identity/statement of educational purpose (cont.)—• If unable to appear in person, the student must

provide the institution—• A copy of a valid government-issued photo

identification (driver’s license, non-driver’s license, or passport); and

• An original notarized statement of educational purpose signed by the applicant

Hot Topics

AMENDED TAX RETURNS

If the institution is aware that an amended tax return was filed, to complete verification, the applicant must submit—

– Signed copy of the relevant tax return or IRS Tax Return Transcript

AND

– Signed copy of the 1040X that was filed with the IRS

IDENTITY THEFT

To complete verification for victims of identity theft—

– Signed copy of IRS income tax return

AND

– One of the following—

• IRS Form 14039, “Identity Theft Affidavit”• Signed, dated statement indicating victim of identity

theft and IRS is investigating• Copy of the police report filed by the tax filer

HIGH SCHOOL COMPLETION STATUS

Previously obtained documentation

– May rely on documentation previously obtained as long as it meets the criteria

High School Completion Abroad

– If unable to obtain a copy of their high school diploma, may document high school completion status by obtaining a copy of the “secondary school leaving certificate” (or equivalent) through the appropriate central government agency

2014-2015Verification

2014-2015 VERIFICATION

• Federal Register Notice, published June 13, 2013, Free Application for Federal Student Aid (FAFSA) Information To Be Verified for the 2014-2015 Award Year

• Dear Colleague Letter GEN-13-16, Published June 13, 2013, 2014-15 Award Year: FAFSA Information to be Verified and Acceptable Documentation

VERIFICATION 2014-2015

• Retained all items subject to verification in 2013-2014

• Added one new item

• Other untaxed income and benefits

2014-2015 VERIFICATION

• Documentation of untaxed income and benefits

• Untaxed income information reported in Question 45 for the student and spouse and Question 94 for the dependent student’s parents

• If the verified income does not appear to provide sufficient financial support, the student or parents must explain how the family was supported during the 2013 calendar year

2014-2015 VERIFICATION

Other new requirements for 2014-15• Pell ineligible graduates will be excluded

from random selection• Pell eligible graduate students should be

added to targeted selection

2014-2015

Verification Tracking Flag Groups:

33

Verification Tracking Flag

Verification Tracking Group Verification Description

V1 Standard Verification Record selected because conditions based on statistical analysis error-prone risk model were met

V2 Reserved for FSA Use Only N/A

V3 Child Support Paid Verification Record selected for Child Support Paid criteria only

V4 Custom Verification Group Record selected for Identity criteria and SNAP/Child Support Paid

V5 Aggregate Verification Group Record selected for Identity criteria, “Standard Verification” criteria and SNAP/Child Support Paid

V6 Household Resources Verification Group

Record selected for Other untaxed income, “Standard Verification” and SNAP/Child Support Paid

FAA Access Updates 2014-2015

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FAA Access will be updated to add required Identity Verification Results to the home page.

FAA Access Updates for 2014-2015

• FAAs will be able to enter SSNs/Name ID/ Verification Results from a dropdown menu on this page

• Click “Add SSNs” and enter additional ones

35

FAA ACCESS UPDATES 2014-2015

• Dropdown options will be Verification completed in person, no issues

found Verification completed remotely, no issues

found Verification attempted, issues found with

identity Verification attempted, issues found with HS

completion No response from applicant or unable to locate

FAA Access Updates 2014-2015

•

37

FAAs will be able to select the Option of Required Results Entry.

FAA Access Updates 2014-2015

38

FAAs will be able to create and upload a flat file to report required results.

Available after April, 2014

FAA Access Updates 2014-2015

39

FAAs will get a confirmation page with the results submitted. FAAs can print the page for their records.

ADDITIONAL VERIFICATION RESOURCES

Please see the slides following the Contact Information for a wide variety of resources regarding Verification

RESOURCES

• Resources used to develop this presentation include:• 2012-2013 Federal Student Aid Handbook,

Application and Verification Guide• *ED 2013 NASFAA Presentation:

Verification 2013-2014 and 2014-2015

*Some of the slides used in this presentation were copied directly from the slides used in ED’s NASFAA Presentation.

QUESTIONS

CONTACT INFORMATION

Cindy DavisCompliance ServicesPHEAA717.720.2182cdavis@pheaa.orgcmpolicy@pheaa.org

VERIFICATION RESOURCES

• 6/18/10 NPRM (Pages 34825 – 34834)• http://ifap.ed.gov/fregisters/FR061810ProgramInterityIssu

esNPRM.html

• 10/29/10 Final Rule (Pages 66902 – 66913 and 66954 – 66958)• http://www.ifap.ed.gov/fregisters/FR102910Final.html

• Federal Register Notice of Information To Be Verified for the 2012–2013 Award Year• http://www.ifap.ed.gov/fregisters/FR071311FAFSAInfor

mation.html

VERIFICATION RESOURCES

• GEN-11-13 and GEN-11-03• http://www.ifap.ed.gov/dpcletters/GEN1113.html http://

www.ifap.ed.gov/dpcletters/GEN1103.html

• Q&A on Program Integrity website:• http://www2.ed.gov/policy/highered/reg/hearulemaking/20

09/verification.html

• Sample 2012-2013 Verification Worksheets• http://www.ifap.ed.gov/eannouncements/020312SampleVe

rificationWorksheets1213.html

VERIFICATION RESOURCES

• 2012-2013 FAFSA-IRS Tax Return Transcript Matrix• http://www.ifap.ed.gov/eannouncements/031612FAFSA1213

VerificationIRSTaxReturnMatrix.html

• 2012-2013 Application and Verification Guide• http://www.ifap.ed.gov/fsahandbook/attachments/1213AVG.p

df• http://ifap.ed.gov/fsahandbook/1213FSAHandbookErrata.html

• GEN-12-07—Acceptable Documentation for Income and Taxes• http://www.ifap.ed.gov/dpcletters/attachments/GEN1207.pdf

VERIFICATION RESOURCES

• 2012-2013 Electronic Data Exchange (EDE) Technical Reference• http://www.ifap.ed.gov/ifap/byAwardYear.jsp?type=e

detechref

• 2012-2013 ISIR Guide• http://ifap.ed.gov/isirguide/attachments/1213ISIRGui

deDec2011.pdf

• Acceptable Documentation Update for 2012-2013 Award Year Verification• http://ifap.ed.gov/eannouncements/110212AwardYr

VerAcceptDocs.html

VERIFICATION RESOURCES

• Acceptable Documentation for Verification of 2011 IRS Information• http://ifap.ed.gov/eannouncements/072012Acceptable

Documentation4Verification2011IRSInfo.html

• Limited Circumstances When a Signed Copy of a Tax Return or Other Documentation is Acceptable for Completing Verification• http://www.ifap.ed.gov/eannouncements/

082112LimitedCircumstancesWhenSignedCopyofTaxReturnisAcceptable.html

VERIFICATION RESOURCES

• 2012-2013 Verification Reporting and Verification Status Code "W" Warning Message (Updated April 10, 2013)• http://ifap.ed.gov/eannouncements/0

40913FirstVerificationWWarning1213.html

VERIFICATION RESOURCES

• Federal Register Notice of Information To Be Verified for the 2013–2014 Award Year• http://www.ifap.ed.gov/fregisters/FR071212FAS

FA.html

• Dear Colleague Letter GEN-12-11• http://www.ifap.ed.gov/dpcletters/GEN1211.htm

l

• Plans for 2013-2014 Verification Worksheets• http://ifap.ed.gov/eannouncements/110112Plan

sfor1314VerificationWorksheets.html

VERIFICATION RESOURCES

• 2012-2013 Verification Reporting and Verification Status Code "W" Warning Message (Updated April 10, 2013)• http://ifap.ed.gov/eannouncements/0

40913FirstVerificationWWarning1213.html

2013-14 VERIFICATION RESOURCES

• 2013-2014 Verification Suggested Text• http://ifap.ed.gov/eannouncements/011813Verifi

cationSuggestedText1314.html

• 2013-2014 Electronic Data Exchange (EDE) Technical Reference• http://www.ifap.ed.gov/ifap/byAwardYear.jsp?ty

pe=edetechref• http://ifap.ed.gov/eannouncements/010913Issu

eAlertIncorrectFieldJustififorVerifiTrackFlag20132014EDETechRef.html

2013-2014 VERIFICATION RESOURCES

• 2013-2014 ISIR Guide• http://www.ifap.ed.gov/ifap/byAwardYear.jsp?type=i

sirguide

• 2013-2014 Application and Verification Guide• http://ifap.ed.gov/fsahandbook/1314FSAHandbookA

VG.html• http://ifap.ed.gov/eannouncements/022813Errataan

dUpdatesfor20132014FSAHandbook.html

• 2013-2014 FAFSA Verification-IRS Tax Return Transcript Matrix• http://ifap.ed.gov/eannouncements/031513FAFSAV

erification1314IRSTaxReturnTranscriptMatrix.html

2013-2014 VERIFICATION RESOURCES

• FAFSA Applicants Impacted by a Tax Filing Software Issue Related to IRS Form 8863• http://ifap.ed.gov/eannouncements/031813

FAFSAAppWhoMayHaveBeenImpactedbyaTaxFilingSoftwareIssueRelatedtoIRSForm88.html

• Availability of 2012 IRS Information for IRS DRT and for Requesting IRS Tax Return Transcripts• http://ifap.ed.gov/eannouncements/030113

AcceptableIRSDocumentation20132014AYVerification.html

2014-2015 VERIFICATION RESOURCES

• Federal Register Notice, published June 13, 2013• http://ifap.ed.gov/dpcletters/GEN1316.html

• Dear Colleague Letter, posted June 13, 2013,• GEN-13-16: 2014-2015 Award Year: FAFSA Infor

mation to be Verified and Acceptable Documentation in PDF Format, 313KB, 8 Pages

• Attachment to GEN-13-16, posted June 13, 2013,• Attachment to GEN-13-16: IRS Tax Return Transc

ript and IRS Record of Account Transcript Request Process in PDF Format, 127KB, 4 Pages